you wouldn't sense a great elation there as the president was speaking the market was kind of in that 188 to 210 in terms of the dow, so we shall see what happens over the weekend and as we go forward >> yes, very busy week next week, so get your beauty rest. >> yeah. thanks for watching blun"power lunch," everybody. >> "closing bell" right now. ♪ good afternoon, a very warm welcome to the closing bell. i'm wilfred frost, a warm welcome to contessa brewer. >> thank you i'm filling in today it's great to be here. we're kicking off the hour with breaking news. >> president trump announcing a temporary end to the government shutdown we've got the latest on what might happen next. >> plus, jim cramer sitting down with wells fargo's ceo tim sloan. cramer will join us live with highlights from his interview. >> no doubt a take on the government reopening as well from jim cramer.

first of all, let's get right to the market reaction, which is positive but not a big move following the opening of the government, but we are nonetheless up3/4 a percent fo the dow, s&p and nasdaq up around a percent the high of the session was 307. let's get the latest reaction to the president's decision to reopen the government. eamon javers is at the white house with more. >> reporter: yeah, wilfred, that's right i've just been inside the west wing trying to get a little bit more detail here from administration officials on what is in this deal. the president said it's a three-week deal to reopen the government through february the 15th, and administration official just told me that that means that federal workers can expect to get paychecks within four to five days. it's not clear, though, whether that's business days or over the weekend, but four to five days is the time frame that they're putting out here another administration official told me that there is, in fact, no new money for any new wall funding in this deal that's according to an administration official here at the white house just within the

past couple of minutes officials here are also saying the democrats who officials would not name, have given them assurances that they could consider voting for wall funding in this future negotiation that's coming up right now, and they're sort of hanging their hat on that idea here at the white uhouse. the democrats might vote for wall funding once the political tension is lowered around this debate, around a border wall they won't name who those democrats are who gave them those assurances not clear who we can follow up with on capitol hill to find out if that's true that's what i'm being told right now. four to five days for federal workers to get paid. no new wall funding in this deal, but they say democrats have given them assurances that they would consider voting for something that had wall funding in it in this ongoing debate going forward. they say they are happy with this agreement for now, but it's going to depend on these ongoing

negotiations, guys >> all right, and what we heard from the president here was a lot of talk, not so much about ending the government shutdown, but about border security and saying that the democrats had come on board with him eamon, stay with us. let me bring in kayla tow she, and jimmy papakukis from aei kayla, i don't know what you're hearing on capitol hill, but usually when you end a historic government shutdown there's a tit for tat. do you get any sense of what the democrats came to the table with in order to get this temporary resolution >> you have to look at the text of the president's speech to see the name checking or the idea checking rather that the president was doing. he gave some real estate to some of these ideas that democrats have floated just this week as part of a future homeland security border security package that they would like to see. he mentioned a small warll, some high-tech features that the number three democrat in the

house jim clyburn has floated. he talked about modernizing ports of entry that speaker pelosi has floated and various other ideas that democrats have suggested, hey, if we give you money the money would need to go towards efforts like these, rather than a concrete wall which the president in that speech said we don't actually need in the united states. it's unclear exactly how the next three weeks will go they're go to conference, the house, the senate will go head to head. what eamon said about potentially having democrats on board for future wall funding is important because that is one of the only ways out that you could see a light at the end of this tunnel here. as for what happens right now in the immediate future, the senate majority leader mitch mcconnell and the top senate democrat chuck schumer were just on the senate floor talking here. they essentially said that they will be holding a vote this afternoon, that it will likely happen by voice, and that if any senator objects, then that would be an impediment or an obstacle to moving forward here so long as every senator is willing to reopen the government

under this deal, then it would go to the house and they could potentially vote remotely today as well, and that is what would cause the government to reopen and those paychecks to finally come back to the pockets of federal workers. >> and given the kinds of stories that are coming into these congressional offices from constituents, you can't imagine that there's going to be any lawmaker who would be willing to stand up and have his or her voice coming up as a no on this. jim, let's talk about the long-term consequences here. we got a note from bank of america revising expectations for first quarter gdp down 2/10 of a percentage point, and pointing out that only some of the private sector spending that's been lost because of the shutdown would be made up at this point how do we recover from the damage of a historic shutdown? >> yeah, listen, i think a lot of that spending, you know, is going to be made up on the other side all of it, doesn't look like it, so overall, this is going to be a negative for economic growth

if you want to offset that, not only would i not shut down the government again -- in fact, i would wager that we don't ever see another shutdown anything more than 25 hours, but congress might also want to take that out of the arsenal, never shut the government down, prevent that from happening that would be a great confidence booster, i think, for markets, and tell you one thing, we certainly do not want to have another government shutdown than go into march where we start having the debt ceiling become an issue again avoiding all that would be great. >> eamon, who's made the bigger climb down here? >> it seems like the president has clearly made an enormous climb when the president's saying in the rose garden, we don't need 2,000 miles of wall, and we never needed. that is tonally very different from the way the president has approached this walsh in the past in which he's portrayed the wall as the one thing protecting

the united states, the integrity of the country itself. it's a big climb down for the president of the united states no question about it white house officials here that i'm just talking to in the past couple of minutes saying that -- as i say they're happy with a deal for now it's all going to depend on how these negotiations go over the next three weeks that will determine whether this is a good outcome for this white house or not. >> do you feel like wilbur ross's appearance yesterday on squawk box and him saying that federal workers shouldn't be too concerned that they haven't got their pay, that they should go to the bank and take out a loan and everything will be all right for them in the end, do you think the tone of that and the reaction to it was the catalyst for the president to make such a climb down >> it didn't help, they looked like a totally detached group of millionaires and billionaires who don't understand what's going on and the kind of pain this is causing or as we saw at laguardia, real economic impact and danger listen, i think it's highly

unlikely they're going to go put themselves back in the same position in three weeks. i don't think that's going to happen more likely they may try this emergency funding and let the supreme court say no if someone's going to say no. i think they have learned a lesson they were getting politically murdered and they're not going to go back and do that again. >> all right, jim, thank you for that eamon, kayla thank you for your final reporting on the topic. >> let's see what this means for the markets. joining us bob pisani and economics reporter steve liesman and rick santelli, very good afternoon to you all this itself didn't lead to a huge reaction? >> no. >> is that because this is a temporary reopening or because the government shutdown issue itself has not really affected the market. >> certainly if it would have gone on it would have been a big issue. at the opening today just after the opening, so the announcement

itself dnts moidn't move the ma. there was hope today that it might end and when you see airports starting to slow down, that's a sure sign, but there was a generally positive narrative, particularly about next week. remember, we've got a high level chinese delegation coming in for the trade talks wednesday and thursday the market believes a deal, rightly or wrongly, can be reached. we've got the federal reserve meeting. they're not going to comment too much on the economic slowdown, and then we've got what i call this global soft landing narrative, federal reserve, people's bank of china stimulating, mario draghi imp implying they're not going to be raising rates for a long, long time the central wabanks are out the, and i think that provides a lot of support to the market despite the gloomy global narrative we've got. >> steve, your take in terms of the likely positive reaction this can lead to in terms of q1 gdp? >> you know, it may be too late to get back all that's there

what are we in the month of january, so you're going to lose a month at least in some respects, the money will come back, but you know, things that people were going to do, especially service purchases, they don't necessarily come back so you'll have some detraction from first quarter gdp, but they may have saved it on the positive side. i'm seeing numbers like 1.5 to 2%, which is a comedown, but not that terrible given that the first quarter's generally weak anyway i think you know, they'll get the data out soon enough somebody asked me earlier when's the soonest we'll see it in the data, it depends on how quickly they can get the data out. it may be several weeks before we see any of it it hasn't shown up in claims, and claims are a good contemporaneous indicator of the economy, and they were pretty darn low recently. we haven't seen an effect on the private contractors and we haven't seen an effect on the economy overall. >> sameer, do you feel like the u.s. economy will remain strong

regardless, and how's your allocation to u.s. equities at the moment >> yeah, we've said for some time, the shutdown wouldn't have much of an impact. we do see some deceleration in 2019 as far as u.s. equities go, we still like them, but we have been encouraging investors to move higher in market cap and higher in quality. a lot of these issues will kind of impact the cyclical piece of it from a tactical standpoint it's hard to see this economy keeps on rumbling for another few years. >> rick, i want to switch focus and talk about something bob touched on briefly, which is sort of the international picture and the softening data we've seen there again this week we talked about the pmis yesterday, today some soft german economic business sentiment data i'm surprised to see the dholla not rally more on that news and significantly because of what the ecb said yesterday what's your take >> well, i think that the foreign exchange market is pulling and pulling and pushing. there's a lot of cross currents

going on because of positions built up that were affected not only by central bank meetings but a variety of other issues, so i think the big comeback today for the euro is what really crimped the dollar, and the euro came back huge against the dollar, came back huge against the yen. you know the one currency it didn't come back on at all that was the british pound word that the dup could back may on brexit as some changes are potentially being made, really gave turbo thrusters to the pound. i think that's a big story as well you know, unlike bob, it doesn't make me feel warm and fuzzy that central banks have to orchestrate a soft landing after years of orchestrating so much stimulus that you could see it from a lunar capsule in outer space. that makes me actually very nervous, and i'll only weigh in on one thing with regard to the issue reopening the partial shutdown of the government the dow jones industrial average as it stands now during the

closure is up 2730 points, and the s&p is up 315 points i know there's humanitarian issues there's people that have been disenfr disenfranchised. i get that but i'm a numbers guy. those are the numbers. >> it doesn't make me feel warm and fuzzy easy, the german ten-year is stuck at 0.3%, and the prospects of it going higher are diminished but the impacts on the market are undeniable they will still tell you the central banks are the primary movers of market sentiment worldwide, what they are doing they provide or can remove so much liquidity. >> and we actually saw a bounceback in the market when the chinese government was so aggressive in addressing the slowing economy there and doing something to say, hey, we still have tools in our kit to address this slowdown. >> we have the bank of china issuing a perpetual bond for the first time ever. i think there's never been a

perpetual bond issued in china they're doing all they can remember, they about at the directive, the big banks act at the directive of the chinese government they're controlled by them that's remarkable. every day there's some new piece of stimulus that comes into the market. >> steve. >> i just want to come in on that first headline from the wsj about the fend may end the balance sheet normalization earlier. that may happen. i just don't think the fed is at the place where it's going to happen next week i think the general may be a little ahead of where the committee is if you look at who said what, there's a lot of folks on the committee, especially powell, clarida, and williams who say, yeah, we'll change it or the balance sheet reduction if we feel like we need to do it, but i'm not sure they've come to that place yet, so i don't know what -- >> but what could tip the scales >> they need to be clear about the effects it's having. i know there's a big debate going on inside the federal reserve about exactly what kind

of kbkt timpact the balance shet reduction is having on the markets. there's a campout represented best by a paper put out by morgan stanley that sees all kinds of terrible impacts of the balance sheet reduction through the stock market and other ways in the economy then there's another paper by jpmorgan that finds almost no effect at all. i don't think the fed is quite there yet. i don't think they would have been there without all this discussion we've had already. >> sameer, we talk about the importance of central banks, the importance of the political developments, but what about oil prices are you keeping a close eye on which direction they're heading? the correlation with equity markets has certainly been high in recent weeks. >> we are. a lot of that has to do with, you know, again, a lot of what led to the decline in '15 and '16 where oil collapsed. this time around it seemed we were heading for a reductix, wee kind of been watching the red counts we just got another number today. unfortunately those aren't coming down as quickly as we'd

hoped. we expect more of a supply response to kind of help stabilize oil, but we are encouraged that the saudis are doing all they can to support it, so from that standpoint, that's one of those risks that no longer is facing the equity market. >> thank you very much, bob, steve, sameer, and rick, have lovely weekends. we'll see a couple of you again later in the show. still to come, "mad money"'s jim cramer joins us with highlights from his interview with tim sloan, including sloan's take on criticism from senator elizabeth warren. up next, the nasdaq outperforming in today's session. the shutdown deal news could have an impact on some companies waiting in the wings to go public remember, the s.e.c. couldn't move forward because they weren't operating. we'll discuss that next. with all that usaa offers

why go with anybody else? we know their rates are good, we know that they're always going to take care of us. it was an instant savings and i should have changed a long time ago. we're the tenney's and we're usaa members for life. call usaa to start saving on insurance today. this round is on me. hey, can you spot me? come on in! find your place, today, with silver sneakers... included with many medicare plans.

call the number on the screen now or visit getsilversneakers.com so, servicenow put your workflows immhm. cloud, huh? your employees must love you. [ chuckles ] thank you. you could say that. i love you. servicenow works for you.

and the army taught me a lot about commitment. which i apply to my life and my work. at comcast we're commited to delivering the best experience possible, by being on time everytime. and if we are ever late, we'll give you a automatic twenty dollar credit. my name is antonio and i'm a technician at comcast. we're working to make things simple, easy and awesome. . welcome back to "the closing bell." the session was up 307, but it's nonetheless a good looking close to the week. s&p is up 0.9, nasdaq up 1.3 we are just in positive

territory for the week as a whole. >> yeah, and the nasdaq leading the charge higher today. bertha qum bert bertha coombs is there we know a lot of these companies were nervous because they need the s.e.c. to sign off >> exactly, and they're working oftentimes in a shr short window, particularly when you talk about the bio tech companies. about a dozen of the companies that had moved forward to go public and file their s-1s in december were bioteches. for them they don't necessarily have the luxury to wait around to wait for that cash to come around not only that, if they had to wait any longer, they would have to re-file their numbers so the day before yesterday, gossamer filed for its ipo to do that unconventional ipo where they would actually list 20 days later automatically. they had listed it at about $16 a share raising more than

$230 million people who are familiar with the markets say they will likely now re-file again, amend that as the s.e.c. gets back to work again on monday and be able to go on a road show to have the window at least until february 15th is really very important for them because that would be the cutoff before they would have to try to re-file some of their financial information. likely a lot of these firms will try to get into that short window, try to push for expedited review from the s.e.c. and get out there in the road show and try to get investors interested into their funds. for investors, this would be an important window as well last year we saw 15 health care, mostly bee owe tech ipos in the first quarter, six of them in january alone. for anxious investors and anxious companies looking to go public, this window may be just what they are looking for. >> yeah. maybe a sigh of relief out there. bertha, thank you for that coming up, we're waiting for

a live response now to the president's news conference, especially from house speaker nancy pelosi we'll take you there live when that happens and see whether chuck schumer joins her there. he's already been on the floor of the senate. >> that is due to start in about 10, 15 minutes still ahead, starbucks gets a boost after reporting same store sales growth in china. we'll hear what other companies are saying about business in that rioegn amid the trade war starbucks stock up 3%. we're back in minutes.ong term . uncovering opportunities for alpha across public and private markets, while anticipating unforeseen risk, has powered our rise to a top ten global asset manager. partner with pgim. the global investment management businesses of prudential financial, inc.

the global investment management businesses of ♪ hawaii is the first state in the u.s. to have a hundred percent

renewable energy goal. if we don't make this move we're going to have changes in our environment, and have a negative impact to hawaii's economy. ♪ verizon provided us a solution that lets us collect near real time data on our power grid. ♪ if we can create our own energy, we can take care of this beautiful place that i grew up in. ♪

still to come, the "new york times" says mark zuckerberg is working to shake up facebook's organizational structure, but will that solve any of the company's underlying issues? we'll speak to the reporter who broke the story next. plus, former national economic council director gene sperling helped advise elizabeth warren on her titeilonulma mli tax. stay with us we're back here in a couple of minutes on the a couple of minutes on the "closing bell. you're gonna love if ythe best of geico.ercials, it's geico's all-time greatest hits back on tv for a limited time. and if you love the best of geico, you're gonna really love voting online for your favorite. you can even enter for a chance to appear in an upcoming geico commercial. this fire's toasty, linda but the best of geico collection sounds even hotter. to vote for your favorite geico ad

and enter to win, visit geico.com/bestof. that's geico.com/bestof. ♪ ♪ our new, hot, fresh breakfast will get you the readiest. (buzzer sound) holiday inn express. be the readiest.

we are awaiting a live response to the president's news conference from nancy pelosi and chuck schumer. we will take you there live when it happens, that is of course the live shot there, due any minute now we'll bring you their comments fascinating developments this afternoon. >> a little more than half an hour before the closing bell dow up right now about -- >> 160 points. >> i need glasses. time now for a cnbc news update with sue herera. you know how that goes. >> what does that number say again? >> here's what's happening at this hour, president trump as you know announcing a temporary end to the government shutdown he will sign a bill to keep it open until february 15th he says if he doesn't get a fair deal on border security from congress, by then he will shut

down the government again and again, we're waiting for that news conference. a shortage of air traffic controllers caused by the partial government shutdown prompted the faa to halt flights into new york's laguardia airport this morning the ground stop was lifted, but the faa warnings delays will persist. flights were also delayed all along the east coast. a judge releasing roger stone on $250,000 bond after he was charged on seven counts, including obstruction of justice and witness tampering. he was defiant upon leaving the courthouse in fort lauderdale. >> i will plead not guilty to these charges. i will defeat them in court. i believe this is a politically motivated investigation. i am troubled by the political motivations of the prosecutors. >> and you are up to date. that's the news update this hour i'll send it back to you guys. >> sue, thanks very much and now the "new york times"

says facebook is planning to unify whatsapp, instagram, and facebook's messenger mike isaac from the "new york times" broke that story. very good afternoon to you thanks for joining us. >> thanks for having me. >> i'm confused on the rationale for this is this an attempt for them to be able to monetize whatsapp in the same way that they can monetize the likes of facebook and instagram? >> yeah, you're not alone in your confusion a lot of the whatsapp employees inside are also kind of confused, but the mandate basically comes down on high from mark zuckerberg who feels like, according to the people i spoke to, feels like he wants to unify the different services because, basically whatsapp and instagram are much bigger now than they were when facebook bought them a few years ago, and so once the underlying infrastructure is connected, the rationale goes that there's

different monetization opportunities one could have, maybe in conjunction with facebook marketplace or different new ad products or other things they haven't quite thought of yet >> it's happening at a time when there's all those questions about what facebook's doing with your data and, you have zuckerberg coming out and saying no, we're not using it this way, but we are using it this way it seems like the timing of this is rather odd. >> yeah, it's an interesting thing, and you know, the caveat here is that it might not actually happen until the end of 2019 or the beginning of 2020. one theory from someone that i spoke to, though, is there's an idea that if you fully integrate all the different systems together, it actually might make it harder to break up or spin off the different parts of facebook in the long run oneof the things people had floated for a long time is spinning off whatsapp or instagram to make facebook less sort of powerful or mow notary

public -- monopolistic it makes it more difficult and makes the case against regulators doing that. >> mike, i would suggest that most users of whatsapp think of purely as a messaging system, no different than sms or imessage, not as a social media platform at all do you think they risk losing a lot of users as it does get integrated into the broader facebook platform? >> this morning once we published the story, i'd already had a bunch of feedback from people who were really upset about the idea of facebooking the entire whatsapp experience as you know, whatsapp is not super popular in the u.s., but it's definitely popular abroad, in south america, southeast asia, europe and india, so those -- you know, facebook risks alienating a lot of people who have come to know whatsapp as a real bare bones but

functional messaging service that will work anywhere in the world. >> how technically challenging is it to integrate these different services >> it's super difficult. a lot of the engineers that i'm speaking to are grumbling already just because this is years of technical infrastructure that have been built and siloed across in these different platforms. instagram has its own text app, whatsapp has its own sort of thing, and the buildings are even physically separate from each other there's a lot of product decisions and engineering decisions that they haven't really even been able to begin thinking through right now, but their marching orders from zuckerberg are pretty clear, so they're going to do it whether they like it or not. >> mike, great stuff, thanks for joining us mike isaac from the "new york times. contessa, i have to say, i think it is a mistake for them to do this as a user myself, i've already left facebook and i would leave

whatsapp too if it was integr e integrated. >> i don't get it. i'm fine with what i have. >> exactly there we go. we've spoken done let's have a look at the markets as we go to break. we're up 0.6% on the dow up 134 points the high of the session was 307. the low was 124. we're much closer to the lows than the highs nonetheless, green across the screen. up next, jim cramer will join us with the highlights of his interview with tim sloan. later, how a slowdown in china affects stocks like starck alebus,pp and pg&e. we have more "closing bell" right after this break so, servicenow put your workflows in the cloud, huh?

mmhm. your employees must love you. [ chuckles ] thank you. you could say that. i love you. servicenow works for you.

it's a revolution in sleep. the sleep number 360 smart bed is on sale now during the january savings event. it senses your movement, and automatically adjusts to keep you both comfortable. it even helps with this. so you wake up ready to put your pedal to the metal. save up to $500 on select sleep number 360 smart beds, now ranked #1 in customer satisfaction with mattresses by j.d. power. plus 36-month financing. ends saturday. sleep number... proven, quality sleep.

welcome back we are awaiting now that live response to the president's recent news conference from nancy pelosi and chuck schumer we will take you there when that happens. but let's check in on some individual market movers in the meantime, intel shares falling after reporting a revenue miss and issuing weak guidance yesterday after the close. that of course is down 6%. also drawing your attention to some of the other chip stocks. late yesterday when intel numbers came out, after hours we did see all of them fall in

unison and sympathy with the intel numbers. today, in fact, a lot of them are doing rather well like western digital and micron, i think we've got for you as well up 6% and today i think analysts and investors are focusing on thinking intel was a one-off, intel had held up better than the others, and those other stocks like micron continuing their recent jump. >> i was looking a lot at what mgm was doing because of course it decided yesterday and announced it would form this board committee to evaluate its real estate portfolio. it wants to enhance the value of that but the "new york post" reported it will not include a merger of two reits. here we go to breaking news right now. let's pause there and here senator chuck schumer with response to the president's news conference about reopening the government temporarily. >> the longest shutdown in american history will finally end today. the president has agreed to our request to open the government

and then debate border security, which is great news for 800,000 federal workers and millions of americans who depend on government services. as democrats have said all along, the solution to this impasse was separate funding for the government and then go over our disagreements from border security, separate the funding of government from the discussion on border security and that's what we got and democrats in the senate and in the house were united in this position throughout the shutdown and ultimately this agreement endorses our position. it reopens the government without preconditions, gives democrats and republicans an opportunity to discuss border security without holding hundreds of thousands of american workers hostage we expect the continuing

resolution to clear the senate and clear the house this afternoon and be signed by the president today. and before i go on, i think on both of us, we want to thank all the federal workers from the bottom of our hearts they've worked so selflessly this past month without pay showing up to do a job they knew was important, but for which they weren't fairly compensated. the workers showed up despite the callous indifference of the administration who treated them as hostages, who treated them as pawns, who belittled their financial strain our dedicated public servants should never, never have to go through this again we will do everything we can to make sure they won't have to, and this past month has proven just how vital government services are to the american people, whether it's our food safety, our airports, our national parks, our economy, our

national security and so much else the american people do not like it when you throw a wrench into the lives of government workers over an unrelated political dispute. working people throughout america empathized with the federal workers and were aghast at what the president was doing to them. hopefully now the president has learned his lesson now, once the president signs the continuing resolution, we in congress will roll up our sleeves and try to find some agreement on border security we don't agree on some of the specifics of border security democrats are firmly against the wall, but we agree on many things, such as the need for drug inspection technology, humanitarian aid, strengthening security at our ports of entry, and that bodes well for finding an eventual agreement, the fact that we have so many areas where we can agree but today the president will

sign the bill to reopen the government along the outlines of what we have proposed, and hopefully it means a lesson learned for the white house, and for many of our republican colleagues shutting down the government over a policy difference is self-defeating it accomplishes nothing but pain and suffering for the country and incurs an enormous political cost to the party shutting it down we cannot, cannot ever hold american workers hostage again speaker pelosi >> thank you very much, mr. leader, and thank you for your leadership in bringing us to this important resolution now where shortly the senate will send over to the house a paper i came over to see the original paper, and we'll get it probably in a half an hour, are two resolutions th

resolutions, one to open up government for all of the agencies of government, and one to proceed to conference on homeland security bill we're pleased that we reached an agreement to reopen government now so that we can have a discussion on how to secure our borders. it is very clear that we all understand the importance of securing our borders, and we have some very good ideas on how to do that, and that will be part of the discussion as we go forward. house democrats look forward to working in a bipartisan way to pass all of the bills to open government as we proceed into the conference discussion. now i'm an appropriate tor, and i know left to their own devices that the appropriators are come to a conclusion. sometimes it comes to the four principles of the leaders of the house and senate to weigh in, and i think that we will have a

very productive time in a short period of time to come to some conclusion we're grateful, inspired by the courage and the determination of america's workers. they have shown during this crisis something so -- such strong character but nonetheless, they have to pay the bills when they come due, whether it's a rent check, paying their mortgage, credit card bills, their car payment, the list goes on some of them didn't even have gas money because they didn't have cash or any more line of credit card ability to put gas in the car to go to work it's really hard for some in the administration to understand how people live paycheck to paycheck and how marginal some of their existences are makes a difference in how they educate their children, how they put food on their table, again, how they pay their rent, et cetera, so we thank them and are so glad

that as the president said earlier, as soon as possible or immediately, so i don't know which is faster, but the quickest of the two they will receive their back pay and the pay that is due today. we're grateful to democrats on both sides of the capitol for their unity that was very, very important in these discussions it's sad, though, that it's taken this long to come to an obvious conclusion we talked about missed bills and financial security being shaken, sometimes questioning -- putting in question the credit, how people's credit is viewed, and that's particularly problematic for our veterans many of whom are in their jobs with security clearances, and a security clearance is affected if your credit rating is diminished, so we are gratefulto our veterans

who have donned the uniform of our country to protect us and then moved on to the civilian side to continue their public service, and we want them to have all the respect they deserve, as well as our other public employees, federal employees who are working so hard to meet the needs of the american people. we value their purpose we appreciate their diligence in performing their jobs, whether it's keeping us safe and in terms of civilian aviation, whether it's the fbi, other areas of public safety, but also just in so many ways whether it's food safety and the rest. the list goes on you're familiar with it, but we don't want in any way, any shutdown of government to diminish the respect that we have for the purpose of our public employees and the excellence of their service. disagreement in policy should never be a reason to shut down

government, it really shouldn't, especially, again, for a period of time that has an impact on paychecks. and i'm sad it has taken this long i'm glad that we've come to a conclusion today as to how we go forward in the next -- in the next three weeks again, i salute the democratic leader in the senate for the work that he did to bring this -- because in the house we passed, working withour leadership, mr. hoyer, ten times we brought bills to the floor to open up government, to open up government, and the most recent one that was presented on the senate floor yesterday was so simple $4 billion, $4 billion for st disaster assistance and open up government for two weeks republicans said no. i think the public weighed in, and i quote lincoln all the time, public sentiment is everything, look what you can

accomplish, almost anything. we thank the public for weighing in so strongly, for paying attention, and i think that will be the success of this conference again, as an appropriator, many conferences when we used to have them, this conference that the public awareness is so -- >> speaker pelosi talking there of course alongside chuck schumer responding of course to the president's own address an hour or so earlier very loud and clearly claiming victory, senator schumer saying the president has agreed to our request. this agreement endorses our position and saying that hopefully the president has learned his lesson let's get out to kayla tausche for further reaction who of course is in d.c. >> reporter: it's exactly that it's a victory lap you are not seeing republican press conferences here on capitol hill democrats got exactly the proposal that they sought just a couple of weeks ago. they had been pushing to open government first and then discuss border security after that they had also been seeking to do

so in the form of what was called a clean continuing resolution with no new additional border wall funding that is what the president agreed to today. the hard part comes now, and you heard house speaker nancy pelosi say that we can now have the debate on border security, now that the government is open, but this is a debate that has been going on on capitol hill since the dawn of the trump administration for two years at this point, and the government has shut down over this issue before for shorter periods of time, but certainly there is now going to be a sprint to the finish line over the next three weeks. we will see whether democrats have, in fact, signaled that they would be willing to vote in favor of some sort of border wall funding going forward that's what the white house seems to be signaling. that's what senate republican majority leader mitch mcconnell seems to be signaling on a speech on the senate floor a few moments ago. but the hard work starts in a

few days. >> thanks for that i just think it's interesting at this point that the democrats seem to have gotten away from the pressure of the government shutdown i had asked senators menendez and booker of new jersey a couple of weeks ago if you're so concerned about the plight of these federal workers, then why aren't the democrats ponying up some money they said look, the president is taking these people hostage, and you don't negotiate with hostage takers i am interested to see how much pressure is on democrats now moving forward and meeting the president in some kind of common ground on border security. >> we could be back here all over again, of course. it's only extended to february the 15th. >> and the president said he's willing to do it. >> he's willing to do it, but i do agree with your sentiment this feels like a big climb down only really from one side. that's why i asked jimmy pethokoukis earlier about that comment. that did sort of mark the peak of the republicans and the president making their standoff, and it's quickly turned around since then. >> and the slowdowns at the

airports today, apparently that had some effect as well. switching focus from the government shutdown to "mad money" jim cramer's interview with wells fargo, it's just been recorded with the ceo tim sloan. the two discussed senator elizabeth warren's 2020 presidential run and her criticism of wells fargo >> here's a senator of the united states who wants to run for president. tim, she wants you gone. >> well, that's -- she can have that been, jim, right? i think i'm the right person to run this company today, and i believe that, one, because i care deeply about this company i've been there for 31 years i know how the company operates. i've taken responsibility. i don't think you should be criticized for taking responsibility, acknowledging mistakes you've made, which we've done, and then moving the company forward. judge me on what i said i would do and what we've one. >> and jim cramer joins us now

live jim, great to have you join us i guess of course the pressure just does not ease up on mr. sloan. as we know, he will now face a hearing in front of the house financial services committee as opposed to senator warren, but that's coming up in march or april? >> we were talking about that, too, and thank you for having me on the show. here's the deal, i think that tim knows as you know will from your coverage that he is the poster boy for bankers when people start talking about why they don't like banks, and he's conscious that it's going to be a long slog, particularly if elizabeth warren runs for president, and there's a target on his head. he accepts it. he recognizes that because he was from the bank during the cross sell period, he is going to take a pounding, but you know what it's kind of like the old timex adds, expect to take a licking and keep on ticking. >> i think it's interesting. as you rightly say he has got a target on his head from

politicians, interestingly i don't feel these political herrings can make the situation much worse for wells fargo's share price. we've already been through this experience with them with john stump and with tim sloan, and they've already received pretty much as big a punishment as you could possibly envisage with the fed's asset cap. it could be something negative headlines when they go to capitol hill, but i actually wondering whether these hearings will be worse for the likes of for example, goldman sachs and david solomon who haven't yet had that recent issue for them, their recent scandal really deeply explored in a way that wells fargo already has. >> in the arc of the interview, it was kind of a funny moment. at one point i said you know what, the stock is in ten times earnings as wells fargo for heavens sake, it's got warren buffett's blessing it was almost like the relief. you could tell that tim hadn't been asked about the stock in ages all he gets asked about is what

happened in 2016 and previous. you and i both know this company has bought back a ton of stock it makes a huge amount of money. this was a gigantic year for it, and he's playing with one hand tied behind his back you can imagine how lucrative this would be when people put it in the rearview mirror now, probably people who are watching say jim, it should never be in the rearview mirror, this should always be the focus, and as someone who likes to talk about stocks you know it's highly unusual to see this company, which is pristine in terms of its long-term reputation, more than 100 years, selling at ten times earnings. >> i know, jim, and i guess that will all come down whether they do command their historic multiple to the growth, which is an area of focus for analysts, and despite tim saying that of course he's taken responsibility for the cross selling scandal, the performance in earnings hasn't been what it always used to be. that will be the bigger question for his legacy as opposed to anything else. >> he certainly agrees with that he wasn't that happy with the

quarter. can i call for a particular bite about what could happen if he becomes a long-term pinpinata, ' ready for this, take a listen. >> i think if i'm not doing my job as opposed to somebody having an opinion about me, right, that isn't always an informed opinion >> okay. >>then of course it would be appropriate that i'm not in this role if i'm not getting things done i work for our shareholders, and i work on behalf of the board, right? they have high expectations for me, and i'm exceeding those expectations. >> there it is i mean, he's basically saying, listen, if i have to resign, i will, if i'm just going to be a lightning rod for criticism, but the fact is, if they don't get the numbers even better in the next couple of years, i do think they're outperforming versus expectations, then there are going to be issues that jpmorgan report, that was a pretty good quarter. citi was a pretty good quarter

goldman surprised the upside only morgan stanley was worse than wells fargo it's something we have to watch. you know how hard that's going to be given the fact that there's still, let's say, some residual down -- residual criticism by the cross sell, which was terrible as we both know >> absolutely, jim, listen, great couple of extracts i look forward to watching the full interview later on "mad money. jim cramer, thank you for joining us. >> you want to be sure to catch the full interview on "mad money. that's at 6:00 p.m. with the exclusive with tim sanlo. we have four minutes left to trade. we'll be back with the close so, servicenow put your workflows in the cloud, huh?

mmhm. your employees must love you. [ chuckles ] thank you. you could say that. i love you. servicenow works for you. your but as you get older,hing. it naturally begins to change, causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. healthier brain. better life. this is a very difficult job. failure is not an option.a.

more than half of employees across the country bring financial stress to work. if you're stressed out financially at home, you're going to be too worried to be able to do a good job. i want to be able to offer all of the benefits that keep them satisfied. it is the people that is really the only asset that you have. put your employees on a path to financial wellness with prudential. bring your challenges.

don't get mad. get e*trade, dawg. welcome back, we're up 0.8% on the s&p, not a bad end to a decent week. let's have a look at the sectors for the week as a whole. it's been kind of an odd week, real estate, technology, utilities financials at the top. quite a mix of risk on, risk off sectors. i'm going to show you the dollar this week, down significantly today, down about half a percent for the week it will be interesting to keep an eye on that >> and we've broken a four week win-streak for the s&p we're down about 0.3%. consumer staples weak,

semiconductors had a great week. the index is up about 4% market optimism next week, chinese delegation coming in the fed is going to be quiet and hopefully this shutdown end is permanent. >> thank you very much, there goes the bell, we are up 175 points on the dow, 0.75% s&p up a little more than that, 0.8%, and tech doing well. that does it for the first hour of the "closing bell." contessa, back to you. welcome to the "closing bell," i'm contessa brewer in for sara eisen today with me mike santoli, cnbc market commentator as you can see the dow industrials up almost 3/4 of a point, the s&p is up 0.8%, and nasdaq up 1 1/3 percent, finishing the week slightly

higher than flight former national economic council gene sperling advised senator elizabeth warren on his wealth tax proposal why he thinks her plan will benefit the economy. here's some of the stories on the radar for investors. president trump announcing a deal has been reached to reopen the government for three weeks intel's interim ceo giving new details on when the chip maker could be ready to announce a permanent leader. and facebook's ceo mark zuckerberg writing an op-ed defending the social media giant's use of your data joining us to talk about the market day, barbara duran, who's a senior portfolio manager from bb eight capital partners. giver me a sense of the day and the week and how we ended in the markets. >> the broad indexes finished the week almost exactly flat, which i think qualifies as a net win just because we came into the week running a little bit hot. the market was up 13%, the s&p in three and a half weeks, so the idea that we didn't give

back much of that, assimilated a lot of these mixed earnings reports and also of course rode the whole roller coaster of news with the shutdown in trade the market has shown itself to kind of be in decent shape, not to say that we're somehow hit escape velocity here off the lows just because we're still kind of working with this in between state. >> barbara do you see this as shrugging off bad news or declining a little bit week to date despite decent earnings >> we're at the point where we're shrug off bad news we were deeply oversold in december we're bouncing back. we've had about 20% of the companies report, and 70% of them have beaten earnings, which is very encouraging but we still have a whole range of companies to see i think investors are going to be following forward outlooks very closely. >> we're getting fine earnings reports against the backdrop of a government shutdown, of trade

tensions that haven't really resolved, questions over whether their meeting's on with china or not on with china, oil, the like is it going into next week, are we going to see some of those negative backdrops receding somewhat with the resolution at least temporarily that the government reopens >> i think the government shutdown, this temporary hiatus does help, but i think what we saw this month in terms of the drop in consumer confidence, despite full employment is worrisome. i think it's the accumulation of all the headline news, which by themselves none of these would really make a difference when has a government shutdown really ever affected the markets, but it's just one more thing. >> it's so long. >> the fact that we've weathered this week, i think we'll be okay earnings are being reset, and it looks like 5, 5.5% for the year, that's decent growth. >> let's talk about the government shutdown ending president trump announced a deal to reopen the government earlier today. eamon javers is at the white

house, while kayla tausche is on capitol hill eamon, let's start with you. >> reporter: wilfred, a striking climb down here for the president of the united states who insisted that he wanted wall funding in this deal to reopen the government ultimately he didn't get a white house official con crcin that there is no funding for the wall in this deal. the president, though, we are told has been informed by unnamed democrats, according to officials here at the white house, that they are potentially inclined to vote for a new bill which has wall funding if the government reopens the officials won't name those democrats who gave those assurances to the white house, so we have no way of verifying that it doesn't seem like there are many dhemocrats on capitol hill who would have given such assurances to the white house. here's how the president put it in the rose garden a short time ago. >> let me be very clear, we really have no choice but to

build a powerful wall or steel barrier. if we don't get a fair deal from congress, the government will either shut down on february 15th again or i will use the powers afforded to me under the laws and the constitution of the united states to address this emergency. >> reporter: so the president there not stating it explicitly but really what he's threatening is to declare a national state of emergency on the border and take matters into his own hands in terms of constructing border wall we'll see if we get there by february the 15th. the reaction on the president's political right has not been good politically for him here's a tweet from ann coulter, the conservative pundit who has been instrumental in the president's thinking about this issue to date. ann coulter tweeting good news

for george herbert walker bush, as of today he is no longer the biggest wimp ever to serve as president of the united states president trump experiencing a little bit of political blowback here from people on the right wing we'll see how far that eveninxts and how the president responds to it. uncertain is what all this means for the possibility of a state of the union address next week remember, that had been canceled because of the government shutdown now it's unclear whether the president will be able to give a speech on tuesday night in the house chamber or not we'll wait for details on that as well. >> eamon, just very quickly before we also get the perspective from capitol hill, despite that fairly tasteless tweet from ann coulter for a number of reasons, how accurate is her perspective relative to other people in the trump base will they all consider this a big climb down, and could it hurt the president in his approval ratings >> i think it could hurt him with his political base. the president has been very concerned about the right wing of the republican party. ann coulter and rush limbaugh in particular were powerful voices

urging the president not to give in, to fight for a wall even if that meant a government shutdown the president was willing to take that tack until he experienced the sort of political pain here of the negative headlines surrounding the shutdown i asked a government administration official here whether or not the airline shutdowns that we saw this morning played a role in the president's decision-making, and i was told that the decision-making here started yesterday but was finalized today. there had been a lot of negative headlines around this shutdown over the past 24 hours, whether it's the wilbur ross comment yesterday on our air or this airline situation at laguardia today, all of that amounting to political pain that the white house decided it simply was unable to tolerate going forward. >> eamon, thank you very much for that let's get reaction from capitol hill kayla tausche is there with a perspective. >> reporter: there is a sigh of relief here on capitol hill and the alluring scent of jet fumes among lawmakers as they try to move quickly to act and vote on

the president's compromise to reopen the government for three more weeks and keep that debate on border funding alive. the proposal that won out was the one that the democrats had been seeking all along, open the government first and then talk about whether or how to contribute any additional funding to the border wall democrats had been pushing for more creative border security measures like drones, a smart wall, a clear type of barrier or more sophisticated ports of entry, but senate majority leader mitch mcconnell said that there are some democrats who promised to provide their votes for a wall in the coming debate over the next few weeks, and today on the senate floor, he asked them to make good on that promise. >> negotiations on dhs will be prioritized over consideration of any other funding bills so with cooperation, we can pass

legislation opening the government and send the dhs appropriations bill to a conference with the house today. i'm glad the closed portions of the federal government will reopen and get back online >> reporter: now, mcconnell aides said as far as a vote being scheduled, that the vote will be scheduled on the timing of that vote as soon as the support for such a measure is locked in. we're still waiting for that meanwhile, a white house tweet said that federal workers will receive their paychecks in the coming days. guys >> kayla, thank you for that barbara when we look at the damage that has been done by this historically long shutdown, it's not just the government workers who will receive back pay, but it's the contractors, it's the businesses in capitol hill, it's the travel and tourism that have lost out, and it won't be coming back what they've already lost at this point. how do we move forward in a way

that makes good business sense >> well, i think in terms of stocks and the markets, obviously you already had airlines saying that some of them are going to see dings in their earnings, and you'll see a little bit of a cascading effect, but it's going to be one time, and i think the market whenever this starts to show up on the next quarter's earnings, it will be minor in the past we've had these shutdowns and there's been ones almost as long it's just now psychologically we have so much uncertainty on so many levels that this has taken on added import, and now also it's only a three-week deadline. and after that we have the china trade deadline investors, even stock traders have to pay attention to these macro concerns right now and the government. >> mike, if now federal workers as they rightly deserve all get their back pay and so on and so forth, will this end up being something that was good for the stock market and the economy buzz because it sort of put the fed more on hold for the early part of the year >> i think the way it came where

the market was already positioned in a bad way, right it was already down 20% at the moment this shutdown started, and looking at it through wall street googles, yes, is the fed going to be patient, this definitely solidified the fed's patience for a while, worried about a slowdown this is going to enable everybody to put an asterisk next to the first quarter economic numbers companies can kind of cite it. i'm not saying it's completely right off the numbers, but it enables us to sort of say the first quarter doesn't have as high of stakes attached to it when it comes to the numbers all that fits together again, it doesn't get us out of this idea that the yield curve is pretty flat the rest of the world isn't in great shape growth wise, but it does, i think give some wiggle room to this whole wall street rationale that the market could do okay from a very low base for a little while even with the shutdown. >> it is one week, of course, before facebook's set to report fourth quarter earnings and mark

zuckerberg penning an op-ed in the wall street journal defending the social media company's data policies. zuckerberg writing quote, there's no question that we collect some information from ads, but that information is generally important for security and operating our services as well a lot of focus, of course, always on facebook, but what's your take on this op-ed, the timing of it, also his decision reported by the "new york times" that they're going to merge various messaging apps is this the right time for that sort of thing? >> i think that they are making their business decisions independent of political, but i think facebook now gets it i think they were very naive in all these past years until they had the russia interference. they're now attracting regulatory attention in a big way. they have got to pay attention to washington. they're upping their lobbying. i watched all the senate hearings with zuckerberg, and what was amazing to me was so many of the senators, by the level of their questions, they really don't understand how the

new media works, their business model. they really were wrong on some key things zuckerberg is trying to explain that, and they've got a lot of explaining to do there's going to continue to be more noise i do not think it's going to disrupt their basic business model. they're too big. we still have this huge secular online phenomena. >> it may be that european standards pushed the issue for the united states in the way that california -- the standards for the rest of the nation i want to ask you about as will mentioned this integration of whatsapp and instagram and facebook is there a big business advantage, a profit upside to doing that >> well, i think facebook is always driven by what their users need -- well, not always, u obviously they're profit driven, but i really do believe they believe they're trying to do the best. i use whatsapp, i use instagram, i'm not a millennial, but i love when they show me an ad -- >> or you play one on tv >> right

i think it's a great thing that they're doing, you know, for their business but it's going to attract antitrust. >> they just don't want to see ads. >> i like targeted ad s. >> it's interesting. you certainly dislike relevant ads less than irrelevant ads. >> then they take money out of my wallet i wouldn't have otherwise spent. >> i think the op-ed that zuckerberg wrote, you can't escape the fundamental tension there, which i have always viewed as the advertisers is the customer, the user is the product and you need more information about the user to make it a better product for the advertiser. >> this is not verdibatim how he put it there is a sneakiness in the claim the reason we collect your data is to benefit you given everything they've been through the last year or so, there's something untoward about it

more distrust comes from that. >> can't you say that about every company, when they say we are doing this for the customer. ultimately you want to make money. but yes, if you really want to be a successful business, what does my customer want. i don't think it's necessarily, you know, i think they can do both and i think they're sincere about it. >> it doesn't say anything about the fake accounts and the political messages that get viral. all that stuff was separate from the normal routine getting user information and selling ads against it we're a year into this whole thing of them attempting these explanationin s it was march of last year that he agreed to testify in congress they're still trying out the latest excuse. >> how time flies when you're having fun we will leave it there, barbara, thank you so much for joining us. up next, several high profile democrats proposing big tax hikes on the wealthiest americans. plus, sara eisen asking some tough questions about the world economic forum in davos.

>> if i'd known you were going to ask me that question, i wouldn't have -- >> okay. fine >> we'll tell you what prompted that reaction from the former nigerian finance minister coming up when did sleep become something that requires effort? like an obstacle we have to overcome every single night. with our newest tempur-pedic mattresses, it's not. because every bed is engineered with the most advanced pressure-relieving material, we've ever created. so you get the deepest sleep you've had... your entire life. sleep effortlessly

with the superior comfort of tempur-pedic. because there's nothing like tempur-pedic sleep. ( ♪ )

and the army taught me likea lot about commitment. which i apply to my life and my work. at comcast we're commited to delivering the best experience possible, by being on time everytime. and if we are ever late, we'll give you a automatic twenty dollar credit. my name is antonio and i'm a technician at comcast. we're working to make things simple, easy and awesome.

. welcome back, senator elizabeth warren becoming the latest high profile democrat to propose new taxes on the wealthiest americans robert frank compares the proposals and impact they could have on the economy. >> one proposal taxes income, the other taxes wealth the lesson from other countries is that wealth taxes rarely work as planned senator elizabeth warren proposing a 2% tax on wealth over 50 million, a 3% tax on wealth over 1 billion. they're about 75,000 families worth 50 million or more in the u.s. warren expects it would raise 2 and 3/4 of a trillion dollars over ten years that follows alexandria ocasio-cortez's plan to tax incomes over $10 million a year. about a dozen developed countries used to have wealth taxes in 1990. now it's only four, france, norway, spain and switzerland. wealth taxes don't raise as much revenue as people expect, and it drives a lot of wealth offshore.

warren says she would enforce compliance by beefing up the irs, requiring mandatory auditing of the wealthy and impoei imposing a penalty for americans who try to renounce their citizenship and move to a tax haven. one big question is how she will define wealth for the wealth tax. some countries just tax the land and the real estate. others tax all your personal holdings, so that could be private companies, your investments and even art, and of course those investments are really hard to objectively value, so it will be critical here to find out from her what she defines as taxable wealth. guys. >> robert, it's a fascinating debate, and weirdly, i would also suggest that the u.s. already has a form of wealth tax, certainly compared to the u.k. where this doesn't exist in having an annual property tax. >> you're absolutely right not only the property tax but we have a capital gains tax many people say we already have some form of wealth tax through

the property tax and through the capital gains tax and even though the property and school district taxes are at a local level, those are still substantial for many families, especially in high tax states. so you're absolutely right, and that will be one argument against this, and that is unlike these other countries that don't have property taxes. >> yeah, their capital gains i would put in a different bracket. that is base oed on a transaction. i take your point, robert thank you. >> thank you. let's bring in now gene sperling, former national economic council director under presidents clinton and obama he helped advise senator warren on her plan. it's great to see both of you. talk to me a little bit about this plan by elizabeth warren and why you think this makes sense for the economy. >> look, i think you have to start with the overall crisis of wealth and equality in our country. i mean, you really have to hear

the reality that 1/10 of 1% has as much wealth as the bottom 90%. that's the way it was in 1917, but we made progress now it's becoming so enormous, and the fact, just the fact that you have the two top experts, economic experts looking at this and saying a 2% tax just hitting on the margin above 50 million could raise 250, $275 billion a year is extraordinary, and so i think you have to decide this is enough of an issue that we have to work through the complexitie because what excites me most is not just the wealth tax but what you could do in terms of helps people save, helping people own homes, doing things that give more americans a shot at having a nest egg by just taking a little from those who are extraordinarily well off, just the 75,000 over 50 million.

>> and in her plan, she's actually raising money if you look at senator harris's plan to give cash to middle income couples, which there are studies that show that the impact is significant on the children of people who have received $3,000 payouts, but her plan costs some trillion dollars or so. the real question is how -- with senator warren, how do you define wealth? >> well, i think senator warren is defining wealth broadly i think the answer to what was raised before is that she is going to look at most forms of wealth, and there would be an exit tax, and i do think in the united states people are much more hesitant to renounce their citizenship and move out of the united states than perhaps in european countries, and i think in kamala harris's proposal, you know, they are different one more how you would raise money, the other is more how you might use it they both share the view of making a more progressive tax

code i think what kamala harris is doing, and i think there's a lot of merit to her proposal is saying the type of work subsidy that we've had for the earned income tax credit is very important, but we have to realize that as economic insecurity has spread, you've got to start moving the kind of work subsidy so that people are getting the true dignity and economic security that they should have when they're working full-time to support their children >> jimmy, will the republicans be rubbing their hands at some of these proposals how will these proposals poll? >> well, i think two years ago i would say no chance, but the populous bend to the republican party, it might be a nonzero chance that someone might go for it i don't know about an inequality crisis i'm not sure what the tangible impact of that is. i do know that we have a low growth crisis in this country and piling on lots of taxes on capital and wealth and

corporation which some of these democrats want to do, that's not going to help it listen, if we have to have a big social state like scandinavia, then we're going to have to tax like scandinavia, and scandinavia doesn't have massive wealth taxes, nor do they have very high corporate taxes. what it has are being value-added taxes. if democrats are serious about wanting to fund programs or redistribution, they should be posing a value-added tax, not the sort of politically popular for the democratic base wealth tax. >> guys, we're going to have leave it there thank you both very much for joining us, gene spurling and jim jimmy pap kis. plus, china's slowdown may be hitting apple, but many other american companies singing a different tune, including starbucks this morning we'll break down the differents co -- differences coming up next

to hawaii's economy. ♪ verizon provided us a solution that lets us collect near real time data on our power grid. ♪ if we can create our own energy, coming up next at i grew up in. ♪

where in all of this is the stuff that matters?

the stakes are so high, your finances, your future. how do you solve this? you partner with a firm that combines trusted, personal advice with the cutting edge tools and insights to help you not only see your potential, but live it too. morgan stanley. the volatility index has been on a decline recently mike santoli is at the telestrator with the charts. >> you promised you were going to draw the line yourself today. >> no, i didn't. i didn't promise i received a request to draw the line myself. we had the volatility index right here what does this show you over the past year? obviously very dramatic peaks both last february and in december, so obviously that's when the market was under the maximum stress remember, what this measures is how much investors and traders

are willing to pay up for downside protection when the market seems like it's running headline lower, it will bid up that insurance very high, and then slowly in a jagged way it comes back to normal as the market tries to settle down. that happened last march, april before it finally got below this line the reason i drew the line here, it's a little over the 16 level. this is the low from the fourth quarter. so something below that would represent a market that is kind of back to some state of normalcy we're not quite there. finally today we got below 18, about 17 1/2 i think some big headline, known potential catalysts are out there, obviously trade war we still have the shutdown, and also you have a lot of after shocks, at least psychologically after you have that kind of a selloff. that's what's going on i think right now there's still a little bit of an overlay of caution, a little bit of a wall of worry that has not gone totally away. >> the early 2018 peak was seen as a bit of temporary one-off whereas late last year was the

slower buildup to it it was a more legitimate level if we go back to the financial crisis, what were the more worrying levels of the vix >> you were up more often in the 40s back then. you really did have systemic stress and you had obviously credit markets that were falling apart. this is much more when it's an equity event this is really the stock market trying to deal with somewhat normal periodic volatility having two big corrections in one calendar year is not all that common in a bull market, but it has happened before. >> okay. mike, great stuff. thanks very much great little circles we'll get the straight line one day. time for a cnbc news update. >> here's what's happening at this hour, everybody at the white house president trump announcing the temporary end to the government shutdown saying he will agree to reopen it until february 15th, but he issued this warning. >> get a fair deal from congress, the government will either shutdown on february 15th again or i will use the powers

afforded to me under the laws and the constitution of the united states to address this emergency. >> in brussels, nato chief yens stoltenberg warning that russia is violating a cold missile treaty and shows no signs of complying with it. he said the inf treaty signed in 1987 has kept europe and the world safe. harvey weinstein was back in court with a new defense team. the judge formally signed off on the changes to weinstein's legal team in his sexual assault case. weinstein replaced his attorney with four new lawyers indicating jose baez and ronald sullivan. that's the news update, guys, have a great weekend i'll see you monday. >> you, too, sue thanks very much. up next here on the "closing bell," the chinese slowdown may be bad for apple we will look at why other

consumer companies like starbucks. and we'll hear from the head of the transport workers union on how much the government shutdown has hurt his members and whether a quick turnaround is in sight. alerts -- wouldn't you like one from the market when it might be time to buy or sell? with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today.

fidelity. so, servicenow put your workflows immhm. cloud, huh? your employees must love you. [ chuckles ] thank you. you could say that. i love you. servicenow works for you.

[ neighing ] [ screeching ] ♪ [ sigh ] it's bring your own phone, not pony. so i could have taken the bus? yeah. bring your phone. switch your carrier. save hundreds a year with xfinity mobile. plus get $100 back when you bring in an eligible phone.

call, click or visit a store today. all right, let's take a look at how we finished the day on wall street. the dow jones industrials ended the day up 3/4 of a percentage point. the s&p up 0.85 percent, and the nasdaq composite up a percent and a third. the russell 2000 up at 1.25%. many investors are listening to see whether tensions with china are weighing on u.s. business at the start of the month, apple's ceo tim cook warned of a slowdown in china. >> as we look at what's going on in china, the -- it's clear that the economy began to slow there for the second half, and what i believe to be the case is the trade tensions between the united states and china put additional pressure on their economy, and so we saw as the

quarter went on things like traffic in our retail stores, traffic in our channel partner stores, the reports of the smartphone industry contracting, particularly bad in november >> yet, since then some other american consumer companies have struck a different tone. here is p and g's david tailor yesterday. >> the vast majority of product we sell in china we make in china. the first thing we want to do is where we can we want to localize our supply chains and serve the consumer and make the product in the country where it's economically possible. that's true today for the u.s. and china, so that does minimize the impact we have what i am seeing is the consumer respond to innovation in great value, the superiority strategy is really working, and there's no evidence in the category size or in our growth rate, in our results that we just reported, that the consumer is pulling back >> and yesterday starbucks beat

earnings expectations in part due to strong growth in china. here is the ceo kevin johnson this morning >> we had transaction growth, double-digit transaction growth in china china is a market that is all about first mover advantage. it's about building new stores and expanding our presence in fact, we're now approaching 3,700 stores in china. we entered ten new cities last quarter. we're now in 158 cities in china. the addressable market and the growth opportunity in china is significant. one thing that the competition is certainly doing in china is it is expanding the addressable market for coffee. it's introducing the chinese consumer who is primarily a tea drinking culture to coffee, and so that's helpful for the growth in the addressable market. >> so why that different rhetoric, and what does it mean for the stocks the really interesting thing here ending there with starbucks is two factors compared to

apple. one is addressable market as ken johnson very clearly saying is still grown. smartphone saturation is not like it is in the u.s., and the other one is the price point for an emerging market makes a big difference it does make you think for this pullback we've seen in apple since tim cook gave that warning whether this is much more apple specific than macro specific. >> obviously does. plus, i mean, apple was relying on china for a large percentage of the growth for this iphone cycle, so it all really came to a head yes, if it's an consumable, if it's an everyday purchase that a growing middle class is going to gravitate toward in an american brand, it makes more sense than a one-time iphone purchase. >> it's not just consumabling either, las vegas sands just reported earnings. it was really notable that they mentioned their optimism about ma cow especially in mass market where previously all the focus on these gaming revenues had been on vip. you heard them mention there coffee and consumables

it really is relying on the people who are more toward the bottom of the paycheck earners to come to the table and to keep spending in fact, las vegas sands called the slowing chinese economy a blip. >> which is, again, a very interesting insight on that mass market versus high end, i guess, mike, the bigger question here is apple's got services revenue, all sorts of other levers it can pull, but whether or not apple will have to do what samsung already does is bring in lots more lower priced phones, whether that would be a smart move or a move that would spook investors. >> they have another tier below in terms of price point. apple has historically said that proves the value of our brand, that we can sell as many as we do at the higher level maybe they got too aggressive at the latest $1,000 phone. let's keep in mind, apple still earns more than 100% of all smartphone hardware profits in

the world fl everyone else is doing it kind of on a break even basis. >> even if the broader macro picture in china starts to slow down, the opportunity for the middle class to grow and more people to move up into that will exist no doubt for a long time to come in china president trump announcing a deal to reopen the government for three weeks, but the president of the transportation workers union says that's just a bandid-a on a gaping wound he'll explain that point of view he'll explain that point of view next each day, brings new possibilities. that's why youner dedicated to helping your company reach its goals. u.s. bank -- the power of possible.

will it feel like the wheend of a journey?p working, or the beginning of something even better?

when you prepare for retirement with pacific life, you can create a lifelong income... so you have the freedom to keep doing whatever is most meaningful to you. a reliable income that lets you retire, without retiring from life. that's the power of pacific. ask your financial professional about pacific life today. with the chase ink business unlimited card, i get unlimited 1.5% cash back. it's so simple, i don't even have to think about it. so i think about mouthfeel. i don't think about the ink card. i think about nitrogen ice cream in supermarkets all over the world. i think about the details. fine, i obsess over the details. think about every part of your business except the one part that works without a thought. your ink card. chase ink business unlimited. chase ink business unlimited, with unlimited 1.5% cash back on every purchase. chase for business. make more of what's yours.

the senate voting on the continuing resolution just now to reopen the government eamon javers is in washington, d.c. with the latest >> yeah, contessa, the vote was unanimous. we had the united states senate passing this bill unanimously after the president announced the deal in the rose garden here now, the bill goes over to the house of representatives where we expect it will pass as well, and then at some point possibly as early as tonight, the president will get the bill and be able to sign it back over to you >> eamon, great stuff. thanks very much for that. let's get reaction now from john samuelson, international president of the transport workers union who's here with us at post 9. very good afternoon to you, thanks forjoining us. >> thank you for having me somehow important was it that we got to this point? >> i think it was extremely important. i think that the transportation system in america was brought right to the edge of the cliff we saw evidence of that in the laguardia airport today. the air traffic control system has been in a state of chaos transportation security officers under an absolute state of duress

the two things that shouldn't be introduced into a complex transportation network are fatigue and stress, and that's all that's been introduced, so this is a welcomed reprieve. >> has safety of air travel been threatened >> absolutely. absolutely we were spiraling to a point where the threshold over what's safe and not safe was going to be quickly crossed and in fact, over the next three weeks we're not out of the woods yet there's a state of fatigue, a state of stress. 1,800 transportation safety officers that do screenings at airports have quit air traffic controllers are in a state of total shock to be honest, from forced overtime and just the ugliness of the situation over the last 30 days, and there's even some more glaring issues than that the foreign maintenance that's done on overseas properties, in other words off u.s. soil, that we have very little access to to begin with, the only stop to bad things happening over there are faa inspections overseas, and

those inspections have totally ceased and they are not going to begin again in the next three weeks. >> so what you're saying is the end of the shutdown as they're voting on capitol hill does not mean the end of the pain >> if it's a three-week shutdown three weeks is not enough time for the system to recover from the damage that was done to it >> when you say -- so 1,800 of those screeners have left the job entirely they've quit, right? >> yes where are the other stress points? is it just because of absenteeism elsewhere or just the stress of working without pay? >> i think so just with the air traffic controllers, it was already severely depleted staffing levels. in new york there were airports in new york, jfk, where they're 40% below normal staffing levels so you add the shutdown into that equation, and it's i think a testament to the work force, the air traffic controllers and the tsos that something disastrous hasn't happened already. >> i interviewed the dean of the maxwell school of public citizenship at syracuse university, and he told me, he

wrote an op-ed about this, and said that the shutdown would discourage future generations from working for the government out of a sense of public service over the fear that their livelihood, that their families could be put at risk for political reasons. what's your sense? is this enough to convince people not to work for the government >> i don't know about enough to convince people not to work for the government, but the fact of the matter is that technologically skilled folks, technicians, they come to work for the government because they get a steady paycheck. they perhaps give up greater salaries in private industry to come for that promise of a steady paycheck, and this has been no steady paycheck for the last 35 days it's been a disaster, so told not be surprising if we lose tons of talent we would have otherwise retained. >> thaunnks for joining us sara eisen is on her way back from davos. she sat down with the former finance manager of nigeria who's beenloed a fats a contender for

the next world bank president. the next world bank president. that interview coming up next.a. is there a cure? td ameritrade's trade desk. they can help gut check your strategies and answer all your toughest questions. sounds perfect. see, your stress level was here and i got you down to here, d. call for a strategy gut check with td ameritrade. ♪

next week is the busiest week of earnings season with 114 s&p 500 companies, 13 dow industrials set tolo report. we'll tell you what to watch nexteds. so how do you stay financially well for all those extra years? well, you have to start planning as early as possible. we all need to plan, for 18 years or more, of retirement. i don't have a whole lot saved up, but i'm working on it now. i will do whatever i need to do. plan your financial life with prudential. bring your challenges.

onmillionth order.r. ♪ there goes our first big order. ♪ 44, 45, 46... how many of these did they order? ooh, that's hot. ♪ you know, we could sell these. nah. ♪ we don't bake. ♪ opportunity. what we deliver by delivering.

incomparable design state of the art technology makes it brilliant. the visionary lexus nx. lease the 2019 nx 300 for $339/mo. for 36 months. experience amazing at your lexus dealer. hey, how ya doing? uh, phil. are you guys good with brakes? we're ok. just ok? we got a saying here. if the brakes don't stop it, something will. that's not a real saying. it is around here. i wrote it. just ok is not ok. especially when it comes to your network. at&t is america's best wireless network, according to america's biggest test. now with 5g e. more for your thing. that's our thing.

it's the final day of the world economic forum in davos. our own sara eisen sat down with the former nigerian finance minister who also sits on the board of twitter here's what she had to say about the world economy, outlook for twitter and a potential world b bank presidency. >> last year people were so much more optimistic. this year it was a little downbeat i can understand why when you look at the numbers, you see a trending downward that global growth is moderate. you see world trade is also

trending downward. you see the commodity prices, particularly in oil and metals are down there's so many signs that things are moderating. and i think that's why the mood is a little downbeat. >> the leaders that were here, angela merkel, shinzo abe, even the vice president of china all repeated calls of globalization and coordination and backing of multi-lateral organizations like the imf, while theresa may and donald trump didn't even come because they're dealing with domestic crises that send a different message. so what is the state of globalization right now? >> well, i think that globalization has to be done with a difference. honestly i'll be very straight on that. >> is it not working >> it's worked, it has delivered real benefits and we shouldn't forget that. poverty has been halved within two decades globally and is now in the single digits it's concentrated in lower income countries in the world.

however, it has left many people behind and we cannot turn a blind eye to that. so as we move forward, we have to look at the mechanism of the market it's not working, you know, the way that we would want it to work we have to move forward. we trade, every nation benefits, but it has to be fair and balanced trade. >> are you optimistic that we are going to see that as a result of these tariff pressures that the trump administration has put in place >> the impact on every country of not having good, sensible, balanced agreements will be quite significant. i mean if we don't have them, there will be a negative impact. i think we will come, we will see agreements it may take a little bit more time than people expect, but i think we'll get there. i mean the opposite is not something we should contemplate. >> you sound like someone who is running to be president of the world bank a job that is open

have you announced your candidacy? are you putting your name out there? >> no, it doesn't work that way. but let me say something, every year i come to davos i'm interviewed. on these issues, on global issues, and i'm very pleased and honored that it happens. so the fact i'm sitting talking with you has nothing to do with the presidency of the world bank it has come hopopen there's a process where countries nominate you don't nominate yourself, so let's wait and see what happens. >> but you used to work at the world bank, managing director there. it's something you would step up and do, wouldn't you >> if i had known you were going to ask me that question, i wouldn't have showed up. but let's put it this way, if shareholders feel i have the qualifications and my name is put forward, i would certainly not say no. >> let's ask about one of your other jobs, which is a board member of twitter. 2018 is the year of backlash

twitter didn't get it as much as facebook they all felt it do you expect more of that in 2019 >> i think so. i think we should expect that as issues of privacy of data come to the fore, issues of what are the rules that guide the behavior of the companies, there will be more of that but i'm very proud of the way that twitter reacted, which was to say let's listen. i mean it took some time admittedly, but we listened to what people were saying in terms of is what is happening in accord with the guidelines, rules and regulations that have been put out by the company, by twitter. and there was a very good learning and a good reaction you heard the ceo, jack dorsey, when he went on capitol hill very humble, very open, very listening, and then coming back and saying i care about the health of this company, of

twitter, and then working to really put more -- strengthen the guidelines and see how they are better applied you know, restore the health of the company by weeding out thousands of bots and nonreal accounts and twitter users you are measured on the average number of daily and monthly users. so to weed out these things and bring down the number is very brave. what happened? it didn't hurt the bottom line so twitter demonstrated that you can do that, be a healthy company and still have a lower number of users who are real and still have a good bottom line. >> she was rounding off a great week of interviews for sara in davos. mike, one big takeaway from davos, clearly the tone less positive this year than it was in the recent couple years that sort of captured what we've seen in the data, particularly internationally. >> it did. it's interesting because the

market did have such a rebound, i think it wasn't as dire as it might otherwise have been. obviously you had an ecb meeting during it. so i think it makes sense that right now at this point in the cycle people are just sort of alert to the possibilities that things are rolling over, whether it's true or not it's not always a sentiment worth following. >> let's talk about what's to come next week key events on the earnings calendar include on monday, earnings from caterpillar, whirlpool and ak steel on tuesday we get the start of the january fomc meeting it's also a massive day for earnings with apple, verizon, 3m, lockheed martin and ebay. >> the fed will hold its news conference wednesday we'll get earnings from facebook, microsoft, tesla and many more. and the earnings parade continues thursday with reports from amazon, ge, mastercard and u.p.s. and on friday we'll get the january jobs report along with earnings from exxonmobil, chevron and deutsche bank. >> mike, how long ago was it

that it was still plausible to get a rate hike in january >> it's been a while since january was really on the calendar i think even when the market was saying perhaps three or four, march was considered the first one. even though it's interesting, even though the fed never said this, the market decided it would be quarterly hikes this year if it was going to be four. so i think january was never on the table. but now we have a press conference after every meeting. >> also it will be interesting to hear what they have to say about the balance sheet and whether that's going to reverse somewhat. >> mike, this week interesting to see the dollar hasn't done too much i think it would have been stronger if not for a rallying british pound for brexit-related issues, but nonetheless, even if the fed doesn't hike that much more, we see the negative dovishness out of various other central banks. does that suggest the dollar is due a rally again? >> you would think so. i think sentiment is very bullish toward the dollar. well, it's hard to know exactly. today you had a big drop in the

dollar index >> the dollar and pound -- >> i think it sort of looks fine up here. if you look at the chart it's holding in there not sure if that says it's about to take off again, though. >> we are out of time. >> mike, thank you contessa, been a pleasure. that does it for "closing bell." have a lovely book "fast money" starts now. we are live from the nasdaq market site. i have am brian sullivan and i'm in for melissa lee tonight d.c. chaos hitting a fevered pitch. the government shutdown is over temporarily. 800,000 federal workers will get paid for the first time in a month, but the drama may actually just be getting started. we'll tell you what it might mean for the markets and your money. first, we've got to begin